NSCB - 4th Quarter 2006 National Accounts

Fourth Quarter 2006
Gross National Product &
Gross Domestic Product by Industrial Origin

Industry less than impressive

Industry accounted for 31.6 percent of GDP and contributed only 1.1 percentage points to total GDP growth, coming mainly from Manufacturing and Electricity, Gas & Water.

Huge declines in Coal and Crude Oil upset Mining and Quarrying

Mining and Quarrying reversed its trend as it plunged to negative 24.7 percent in the fourth quarter of 2006 from the robust growth of 26.5 percent in the previous year due to the declines in Other Non-Metallics, Crude Oil, Natural Gas & Condensate and Gold.

Other Non-Metallic Minerals plummeted to negative 50.7 percent from its hefty growth of 84.9 percent in 2005, mainly due to the sharp decline in Coal as a result of lower demand from local power plants. Crude Oil, Natural Gas & Condensate likewise dropped to negative 28.4 percent from a growth of 52.7 percent. Despite the prevailing high prices in the world market, Gold Mining further slipped to negative 5.7 percent from a negative 4.7 percent with the decline in the production of small scale mining.

On the other hand, Nickel soared to a remarkable growth of 1,326.2 percent from 104.2 percent growth in the previous year, driven by the upsurge in demand for Nickel and high prices in the world market. Other metallics posted a marginal growth of 0.7 percent from a huge growth of 117.9 percent. Chromium mining was up by 27.4 percent from 19.7 percent, sustaining its growth which started in the fourth quarter of 2005. Stone Quarrying, Clay & Sandpits and Copper mining likewise posted positive gains of 10.5 percent from negative 32.5 percent and 1.1 percent from negative 0.5 percent, respectively.

Gains in Manufacturing modest

Manufacturing decelerated to 4.4 percent in the fourth quarter of 2006, from the 5.9 percent growth in 2005. Food Manufactures, which grew by 6.8 percent from 12.8 percent was the leading contributor to growth. This was followed by Basic metal industries, up by 41.6 percent from negative 19.1 percent; Chemical and Chemical Products, up by 8.3 percent from 4.5 percent growth; Footwear Wearing Apparel, up by 9.2 percent from 17.7 percent; Beverage Industries, up by 12.6 percent from negative 6.7 percent; Miscellaneous Manufactures, up by 13.2 percent from negative 6.2 percent; Metal Industries, up by 14.3 percent from negative 16.0 percent; and Non-metallic Mineral, which increased by 5.5 percent from 2.1 percent. Production gains were also registered in Publishing & Printing, Wood & Cork Products, Transport Equipment, Paper & Paper Products and Leather & Leather Products.

On the other hand, the following pulled down the sector’s growth during the quarter: Products of petroleum and coal declined by 5.3 percent from 14.8 percent due to the 25 day maintenance shutdown of Malampaya, the damage wrought by Milenyo to Metro Manila power lines, and the low demand for coal; Textile manufactures, down by 22.1 percent from a growth of 20.4 percent; Electrical machinery, which declined by 3.6 percent from a growth of 5.7 percent; Machinery Except Electrical, down by 37.4 percent from negative 45.6 percent; Tobacco manufactures, down by 7.7 percent from 7.3 percent; Rubber products, down by 3.6 percent from negative 5.0 percent; and Furniture and Fixtures, which decreased by 0.7 percent from a growth of 14.1 percent.

Construction recovers from slump

Construction recovered with a growth of 4.7 percent from its slump of negative 6.5 percent in the previous year benefiting from the projects of the national and local government and Government Owned and Controlled Corporations (GOCCs).

Sustained demand from Commercial sector bolsters Electricity

Electricity and water accelerated to 8.3 percent in the fourth quarter of 2006, from 2.8 percent in the previous year, largely driven by Electricity. Accounting for about 93 percent of the total sector, it surged to 8.1 percent from 2.9 percent, bolstered by the sustained demand from the commercial sector as new super malls opened in several areas of the country during the year.
Similarly, the Water sub-sector strengthened its growth to 11.4 percent growth from 2.5 percent in the same period last year. Growth was attributed to improved water sales, decline in non-revenue water and the continued expansion in customer base.

GROSS VALUE ADDED in INDUSTRY
4th Quarter 2005 and 4th Quarter 2006
AT CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/INDUSTRY GROUP	4th Qtr 2005	4th Qtr 2006	Growth Rate (%)
TOTAL INDUSTRY	107,752	111,328	3.3

a. Mining & Quarrying	5,233	3,943	-24.7
b. Manufacturing	81,758	85,324	4.4
c. Construction	11,856	12,415	4.7
d. Electricity, Gas & Water	8,905	9,646	8.3

GROSS VALUE ADDED in INDUSTRY
Annual 2005 and 2006
AT CONSTANT 1985 PRICES, IN MILLION PESOS

INDUSTRY/INDUSTRY GROUP	2005	2006	Growth Rate (%)
TOTAL INDUSTRY	399,076	418,209	4.8

a. Mining & Quarrying	20,032	418,209	-6.0
b. Manufacturing	292,238	307,932	5.4
c. Construction	49,142	51,381	4.6
d. Electricity, Gas & Water	37,663	40,060	6.4

Source: National Statistical Coordination Board (NSCB)

Posted 31 January 2007.